News Briefs - Dec. 21
The Latest Headlines:
- Union Pacific Raises 4Q Guidance
- Truckers to Pay More to Use the Chicago Skyway
- Fed's Lacker Says Rates May Rise Despite Low Inflation
- California Grocers Reach Tentative Deal With Workers
- Truck Drivers Avert Strike With 99 Cents Only Stores
- ArvinMeritor Sells Light-Vehicle Parts Plant
- Tolls Likely to Increase on New York State Thruway
- Truckers to Pay More to Use the Chicago Skyway
Union Pacific Raises 4Q Guidance
Freight railroad Union Pacific Corp. said Tuesday its fourth-quarter earnings would be in the range of 82 cents to 87 cents per share, higher than its previous guidance of 65 cents to 75 cents.The company said in a statement the projected results exclude an expected charge of $153.6 million related to asbestos-related claims.
Union Pacific said commodity revenues for the fourth quarter would inrease about 8%. Transport Topics
Truckers to Pay More to Use the Chicago Skyway
Skyway Concession Co., the new operator of the Chicago Skyway, said it would raise tolls on Feb. 16 to discourage truck drivers from traveling during peak times, the Associated Press reported.The new rates for the peak hours of 4 a.m. to 8 p.m. vary from $5.10 for vehicles with three axles to $11.80 for seven or more axles, AP said. The rates drop to between $3.60 and $8.40 at other times.
Formally known as the Chicago Skyway Toll Bridge System, the eight miles of elevated roadway links the Indiana Toll Road with the Dan Ryan Expressway, AP said. It served a total of 17.4 million vehicles last year.
Rates for passenger cars will increase to $2.50 one-way from $2. Transport Topics
Fed's Lacker Says Rates May Rise Despite Low Inflation
Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, said that even if inflation remains low, the central bank may still have to raise interest rates based on changes in productivity, Bloomberg reported.Speaking to the Charlotte, N.C., Chamber of Commerce, Lacker said the U.S. economy would expand 3.5% to 4% in 2005, with inflation "well-contained." Still, he said rates likely would rise during 2005, Bloomberg said.
The Fed raised the overnight bank-lending rate last week for the fifth time this year to 2.25% from a four-decade low of 1% in June. Transport Topics
California Grocers Reach Tentative Deal With Workers
Grocery chains Safeway Inc., Albertson's Inc. and Kroger Co. reached a labor agreement with 19,000 supermarket workers in Northern California, averting a threatened strike, the Associated Press reported.The agreement was reached late Sunday and details were being withheld until the workers represented by United Food and Commercial Workers Union 588 voted on the deal.
A strike would have likely affected the truckers who transport goods to these stores.
The contract covers employees working in stores stretching from Modesto, Calif., to the Oregon border. All three company were still negotiating with union leaders representing San Francisco Bay area workers, AP said. Transport Topics
Truck Drivers Avert Strike With 99 Cents Only Stores
The Teamsters ratified a five-year contract with 99 Cents Only Stores, averting a potential strike by truck drivers, the Los Angeles Times reported.Paul Kenny, president of the International Brotherhood of Teamsters Local 630, said the 65 drivers who serve the main distribution center near Los Angeles won raises of about 10%, along with protections that limit the retailer's ability to contract out their jobs, the Times said.
Kenny said company executives agreed to require all drivers to be dues-paying members of the Teamsters. Of the company's 7,600 employees, only the California truck drivers are currently unionized, the Times said.
99 Cents Only operates 220 retail stores in California, Texas, Arizona and Nevada. Transport Topics
ArvinMeritor Sells Light-Vehicle Parts Plant
Components supplier ArvinMeritor said Dec. 9 it sold a light-vehicle systems plant in Columbus, Ind., to privately owned Columbus Components Group LLC. The facility supported ArvinMeritor’s automotive stampings and components manufacturing business. ArvinMeritor did not disclose terms of the sale.Bloomberg News said the company was selling some business units to focus more on supplying parts to automakers and heavy-truck manufacturers, in addition to selling replacement components for heavy trucks. Transport Topics
Tolls Likely to Increase on New York State Thruway
The New York State Thruway said its board of directors endorsed a plan to raise tolls on the 641-mile highway by 25% for passenger cars and 35% for commercial vehicles starting May 1.The thruway connects New York City and Buffalo and also makes direct connections with the Connecticut and Massachusetts turnpikes.
The increases would be the first since 1988 and would help fund $2 billion in capital improvements, including upgrades of the E-ZPass system, according to the Dec. 17 release.
The thruway also said that commercial vehicles with E-ZPass would receive a 5% discount on tolls and be eligible for further volume discounts.
The toll increases must be formally approved by the board this spring. Transport Topics
